Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Blaby. Inevitably, the length of lease remaining reduces as time goes by. This is often ignored and only becomes a problem when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Blaby have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful deliberation before delaying your Blaby lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Engaging our service will provide you better control over the value of your Blaby leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Gabriel, started to get close to the eighty-year mark with the lease on his garden flat in Blaby. Having purchased his home 19 years previously, the length of the lease was of minimal bearing. by good luck, it dawned on him that he would soon be paying an escalated premium for a lease extension. Gabriel was able to extend his lease just ahead of time in January. Gabriel and the landlord in the end agreed on a premium of £6,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by at least £925.
In 2011 we were e-mailed by Mrs Eleanor Patel who, having moved into a ground floor apartment in Blaby in April 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Blaby with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease expired in 2104. Having 79 years unexpired we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
In 2012 we were phoned by Mr Daniel Lambert who, having acquired a newly refurbished apartment in Blaby in January 2005. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Blaby with 100 year plus lease were valued about £193,400. The average ground rent payable was £65 billed every twelve months. The lease ended in 2084. Having 59 years outstanding we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of legals.